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Question
The market price for a New York City taxi medallion is less today than it was in 2013. This is because
a. the city instituted price caps as part of an effort to regulate the monopoly.
b. New Yorkers have turned to walking and bicycling as ways to get around.
c. ridesharing services like Uber have made the medallions less valuable.
d. the city greatly increased the number of medallions by selling new ones.
e. passenger-on-driver crime has made taxi driving a less desirable line of work.
Answer
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Related questions
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What is the long-run consequence of a price ceiling law?
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b. A surplus will continue to exist and will grow smaller over time.
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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Q:
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